Effects of Management Commitment on Financial Performance of Private Schools: A Survey of Selected Schools in Trans-Nzoia County, Kenya

Abstract

The aim of this study was to examine the effect of management commitment on financial performance of private schools in Transnzoia County The study was conducted through a descriptive research design. In this study the target population was all the directors and employees of selected twenty five private schools in Transnzoia County. For the purpose of this study, the researcher used both primary and secondary data. The secondary data was obtained from comprehensive archived sources namely published material, journals, internet sources and books while primary data was collected by the use of questionnaires. Descriptive analysis was employed to analyse qualitative data. Pearson correlation coefficients were constructed to test the relationship between the dependent and independent variable. The findings were presented in the form of frequency distribution tables. The findings of this study indicated that all the study variables management commitment (r=0.798, p=0.000) training (r=0.868, p=0.000), monitoring and evaluation (r=0.776, p=0.000) and organization policies & structure (r=0.819, p=0.000) had a significant relationship with financial performance. Based on the findings of this study, it was recommended that Private schools in Transnzoia County should invest more in staff development, they should ensure effective budgeting process is facilitated through capacity building, robust systems and processes and prioritization All stakeholders should get involved in budget execution in enhancing the overall budget control process and there is need to establish a strong link between the planning process and the budget control process. Schools need to adopt a medium term plan to define priorities for their daily tasks. The study lastly recommended that further research be doneon the same field but in other sectors or organizations another should focus on other determinants’ of budget control.

Keywords: Management Commitment, Financial Performance, Budget Control.